Inditex based on the readings obtained by Trading Machine, aimed at analysis and short-term operations, obtained a high positive moment, but being one of the companies with the least variation in its contracting activity within the Ibex 35, an element that reduces the reliability of the recent increases, being also one of the assets with lower variation range of the Ibex 35.
Inditex Readings on the Short Term Trading Machine
The Inditex price recovers short-term positions, starting from the minimum that the price leaves us at the height of 27.05 euros per share. However, the recovery movement cools in the vicinity of the first levels of minimally relevant resistance, such as the gap or downward gap -resistance- projected from 28.65 euros. At the same time, the Inditex price develops a reduction in the contracting activity, which reduces the reliability of the recovery movement, at the same time as the average amplitude range, that is, the average difference between the highs and lows of each daily candle is gradually lower and hence less movement in price.
In this sense, if the inability to resolve resistance levels upwards is extended in a timely manner, the probability of short-term supports breaking will be directly increased. Therefore, we must monitor the gap or upward gap -support- projected from 27.96 euros per share, the violation of which would enable the offer to think about attacking (1) the growing medium-term guideline and (2) the previous minimum of 27.05 euros per share.
Inditex on daily chart with average amplitude range in percentage (upper central window), MACD (lower central window) and trading volume (lower window)
Inditex daily chart with Trading Zone analysis template for the short term